William H. Breucher III - Page 16

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          distributed to Mr. Bruecher from Bruecher Foundation.                       
          Respondent’s determination that Mr. Bruecher received                       
          constructive dividends is sustained.                                        
          2.   Section 6651(a)(1)--Failure To File                                    
               Respondent determined that Bruecher Foundation is liable for           
          an addition to tax under section 6651(a)(1) in the amount of $948           
          for taxable year ended March 31, 2000.                                      
               Section 6651(a)(1) imposes an addition to tax for the                  
          failure to file timely a required return unless the failure is              
          due to reasonable cause and not due to willful neglect.                     
          “Reasonable cause as applied in section 6651 has been defined as            
          the ‘exercise of ordinary business care and prudence.’”  Estate             
          of Duttenhofer v. Commissioner, 49 T.C. 200, 204 (1967) (quoting            
          Southeastern Fin. Co. v. Commissioner, 153 F.2d 205 (5th Cir.               
          1946), affg. 4 T.C. 1069 (1945)), affd. 410 F.2d 302 (6th Cir.              
          1969); see also sec. 301.6651-1(c)(1), Proced. & Admin. Regs.               
          (“If the taxpayer exercised ordinary business care and prudence             
          and was nevertheless unable to file the return within the                   
          prescribed time, then the delay is due to a reasonable cause.”).            
               Whether the failure to file on time was due to reasonable              
          cause is primarily a question of fact to be decided from all the            
          circumstances in a particular case.  See Estate of Duttenhofer v.           
          Commissioner, supra.                                                        

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